The Republic of Malta is situated in the heart of the Mediterranean Sea and is just a few hours away from most of the major cities in Europe. The country has become quite well-known because of a variety of factors and this has pushed many people to consider the idea of setting up their business in Malta. It is obviously a major decision and not one you should make lightly. You should know what makes it a good idea to set up your business in Malta. Check out some reasons below:
- Well-regulated and flexible regulatory jurisdiction
The country of Malta has become renowned for being well-regulated, as there is specific legislation that covers different types of entities, such as trusts, foundations, single member companies, protected cell companies and private and public limited companies. Likewise, there is also legislation dealing with specific business activities, such as financial services, maritime, gaming, intellectual property and financial services, amongst others.
- An efficient tax system
Malta boasts an efficient and effective tax system, not just in respect to corporate tax, but also in terms of indirect and direct taxation. There is a system of tax refunds in place on the distribution of dividends, thereby reducing the effective tax. In fact, Malta’s effective tax rate is the lowest in the entire EU region. Likewise, no withholding tax is applicable on interest, dividends and royalties. You can consult specialists, such as https://papilioservices.com/, for further guidance about the Maltese tax system.
- Low operational and setup costs
The cost of establishing and running a company in Malta is comparatively lower and a lot more reasonable than the same costs that are charged in other jurisdictions in Europe. You can get professional services at very low cost in Malta and this can lead to an efficient and low cost structure.